Front Page Titles (by Subject) Ricardo on Money - Literature of Liberty, July/September 1979, vol. 2, No. 3
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Ricardo on Money - Leonard P. Liggio, Literature of Liberty, July/September 1979, vol. 2, No. 3 
Literature of Liberty: A Review of Contemporary Liberal Thought was published first by the Cato Institute (1978-1979) and later by the Institute for Humane Studies (1980-1982) under the editorial direction of Leonard P. Liggio.
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Ricardo on Money
“Henry Thorton and the Development of Ricardo's Economic Thought.” History of Political Economy 10 (Summer 1978): 193–212.
The importance of monetary questions in David Ricardo's economics has frequently been understated. In particular, much of Ricardo's system developed as a response to the monetary theories of Henry Thorton (1760–1815), the English banker and parliamentarian whose book The Paper Credit of Great Britain studied the link between the quantity of money, prices, and interest rates.
In 1797, the Bank of England suspended specie payments (that is, payments in gold for bank notes). This policy was defended by the London banker and economist Henry Thornton, who argued that doing so had averted a panic. Thornton's analysis, found in his influential Paper Credit, stressed short-run disequilibrium in the financial market. He favored a discretionary monetary policy, since he believed that this was within the capacity of the Bank of England.
Ricardo in The High Price of Bullion (1810) and Reply to Bosanquet (1811) challenged these contentions. He regarded money as neutral and conducted his analysis in real (commodity) terms. An increase in the money supply could raise only the level of prices; it had no long-run effect on the rate of interest.
When the Bullion Committee was established to reconsider the specie payment question, Ricardo was able to influence Horner and Thornton, who were members of the committee, to adopt his own favorable view of specie resumption. Ricardo, although not the author of the committee's report in 1810, still exerted a powerful influence.
Ricardo continued his interest in monetary questions throughout his life. In particular, the Principles (1817) grew out of his controversy with Thornton and was not simply a response to the debates about Corn Laws. In the Principles, Ricardo continued his sharp separation between the goods and money sectors of the economy.